MR CHIFLEY CONSIDERS THAT CHANCES OF WAR HAVE GREATLY RECEDED

Otago Daily Times, Issue 27078, 12 May 1949, Page 7

MR CHIFLEY CONSIDERS THAT CHANCES OF WAR HAVE GREATLY RECEDED

New Zealand Press Association—Copyright

Rec 9.36 p.m. CANBERRA, May 11. “I said in Parliament a year ago that I did not think war was inevitable,” said the Prime Minister, Mr Chifley, this afternoon, addressing the Labour Party Federal Executive. “ I feel now that the chances of war have receded. There will still be a long, contentious argument. Some do not want to strengthen Germany economically and others fear a strong military Germany. Russia does not want a strong Germany and France remembers 1870, 1914, and 1939. *

“In France the Right and Left extreme parties have both lost ground, ancHhe present Government has vastly improved conditions. The real solution in Europe is that the United States should buy in value what she sells. Russia does not want war with the United States as she is 30 years behind America in industrial capacity. “The world problems are difficult, particularly the inability of the Western European countries to balance payments with the dollar area.” added Mr Chifley. “There is no question that Marshall aid saved countries such as France and Italy from economic chaos, which has been averted also by British help. By the end of 1951, Australia and other sterling countries are going to find it difficult to buy sufficient *consumer goods or capital goods from the United States. Australia will have a dollar deficit this year. Chances of Recession “ The position of America,” continued Mr Chifley, “is that there is a sag in some prices and some production is saturated. In spite of Marshall aid and rearmament there could be some recession. If that happened it could affect Australian wool sales. This year Australia will not sell America the amount of wool anticipated, and the price of other commodities we sell to the United States is dropping. We are in a favourable position concerning our sterling balances in London, which will help buy the capital equipment Australia cannot produce. “The world is very crowded. I believe Australia can maintain a greater number of people than she has,” he added. “The overcrowding of countries such as Italy, Holland . and France is Australia’s great opportunity which may never come again. If

we do not grasp it Asian countries will undoubtedly be looking our way. The quicker we act the better types we shall get. We are also receiving a very desirable flow of British migrants. I give the warmest support to getting as many of the best migrants as we can.” Referring to the growing influence .of the eastern countries, he said: “ The pt||Mi«way to win the support of the ear-I,for the democracies is to improve agepfconomic welfare of- the Asian jpe'dples. It cannot be done with armies SSlwlf navies. Two world wars have paf improved the position of the 'Asians. It is desirable that the Asian peoples should have a decent way of life and that democracy, liberty and freedom do not just mean freedom to starve.”